Council considers $1.8 million surplus

Mar. 24, 2013

Jim Entenman

Written by

Michelle Erpenbach

The Sioux Falls City Council is deciding how to spend a $1.8 million surplus left over from last year’s capital budget, money that could go toward a variety of projects.

Council members are expected to discuss during the next council work session April 10 whether and how to spend the money.

Department heads from the police, fire, health, transit, multimedia and engineering departments all have suggested projects on which the money could be spent, according to the city administration. The suggestions total more than $3.5 million, and other projects suggested by councilors or city residents might be considered, too. Not all will make the cut.

Councilors have several options as far as how to handle the surplus, but they could not decide not to spend the money. They also could decide to roll the money into the 2014 capital budget or establish a capital reserve fund, said David Bixler, city budget analyst. A capital reserve fund could be used if a project’s bid comes in high.

Proposed projects suggested by the department heads include law enforcement generator upgrades, $800,000; fire station alerting system replacement to accommodate additional fire stations coming online in the future, $290,000; accessible bus stops under the Americans with Disabilities Act, $46,000; and traffic-signal system installations at 26th Street and Red Oak Drive, 33rd Street and Sycamore Avenue, and Sertoma Avenue near Roosevelt High School, $200,000.

City financial officials announced the surplus last month, which partly is the result of unanticipated revenue from the second-penny sales tax, the biggest source of revenue for capital projects. Making up the bult of the surplus is a $1.1 million land deal with Lloyd Cos. for a piece of property near the entrance of Falls Park at the end of last year.

Bixler said the public is encouraged to contact councilors, too, to make suggestions as to how to spend the money.

Greater accessibility
for city bus stops

One-quarter of the city’s bus stops don’t meet the federal standard for accessibility under the Americans with Disabilities Act, according to consultants hired in 2011 to perform a citywide audit of public facilities.

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Council Chairwoman Michelle Erpenbach said she will suggest using some of the extra money for the ADA-accessible bus stops. Her goal is to spend $800,000 of the surplus on projects and put the rest in a capital reserve fund.

This year’s surplus is on the small side compared to recent years. The surplus was $4 million last year, and $3.8 million in 2011.

But Erpenbach and other councilors say it’s nice to have a little extra to allocate toward projects that might not have come into play for a few more years or arise unexpectedly.

“During the budgeting process, you make projections on what you’re going to have for revenue, and then we try to allocate that out accordingly,” Councilor Jim Entenman said.

Entenman said he looks at the areas that have the most need and some projects that are ready to move forward with funding, and votes to allocate the surplus into a variety of different departments, not just one area.

The ADA-accessible bus stops and a road improvement project on Marion Road from Maple Street to 60th Street were those that Entenman identified as a priority.

Town Hall repairs,
fire station lot

Previous projects funded by surplus capital budget funds have included repairs to Carnegie Town Hall and repairs to the parking lot at the fire station at 37th Street and Minnesota Avenue, Entenman said.

If the council decides to use the money for a project or projects already approved within the capital plan, an ordinance is not needed. Money would have to appropriated for a new project, said city attorney David Pfeifle. An ordinance involves two readings, with public input allowed during the second reading.